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Life During Warfare, by Martha Thomases – Brilliant Disguise

October 15, 2011 Martha Thomases 5 Comments

This week’s most popular buzzwords are “class warfare.”  The Republicans have trotted this out for a bunch of the last year, but, with the protesters in Zucotti Park inspiring others around the country, they’ve stepped up their game.

As Americans, we pride ourselves on our delusion that we have no class system.  It’s true that, unlike older countries, we have no titled gentry.  However, if you ask anyone who is a touch swarthy, or speaks with a regional accent, or whose last name ends in a vowel, you’ll find that they’ve faced lots of assumptions about their abilities and intelligence and taste, assumptions that feel a lot like discrimination based on the fact that they were born in the wrong kind of family.  And if your last name is “Kennedy” or “Bush” or “Hilton,” you get a leg up, whether you deserve it or not.

We’re Americans.  Making these assumptions beats thinking.

The GOP brought out the “class warfare” meme to discredit the motives of those who want to reform the tax codes so that those who earn more than $250,000 a year (or, if you’re Chuck Schumer, more than $1 million a year), you pay a higher percentage on the part of your income over that amount.  These proposals also include ending an exemption that allows money earned from certain financial instruments to be taxed at a lower rate than salaries.

Fewer than one percent of the country would have to pay more under these changes, and, in all cases, they would still have plenty of money to provide for themselves and their families.  Meanwhile, the average income of the other 99 percent has fallen.

So, where’s the class warfare?

According to arguments with which I mostly wither disagree or mostly agree, talk of tax reform pits average people against the rich.  

If you want the numbers behind the arguments, here is a handy bunch of diagrams, drawn from a fairly neutral set up numbers.

The Republicans would have you believe that they never indulge in class warfare.  However, as someone who has more than once been accused of being a latte-drinking, Volvo driving, Chardonnay-sipping liberal (even thoughI don’t have a car, drink my coffee black, and generally prefer a white wine that is less oaky), I suggest that they may be mistaken.

It’s not a new tactic.  The GOP has been using it for nearly 80 years.  They were wrong then, and they remain wrong.

My father was one of those men lauded by the Republicans, someone who took a chance as an entrepreneur in a new industry, made a lot of money and, in the process, created thousands of jobs.  He was a smart man, but he also knew he was lucky, and he knew he didn’t get to his level of success by himself.  He always voted for the Democrat, even if he knew it would cost him more in taxes, because there were issues that were more important to him than money.  He lived through the Depression, and he served in the Army.  He’d spent his honeymoon with my mother driving from New York to Florida, and he’d seen signs in motels that said, “No Jews” (and because Thomases is that kind of name, he’d registered anyway). He considered paying taxes somewhat akin to going to the dentist – it may be no fun, but you’re lucky that you have a to do it. 

My father knew that, no matter what they said, he’d never be considered part of the upper class.  

Martha Thomases, Media Goddess, has always been proud of the fact that she’s no Lady.

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Comments

  1. Uncle Robbie
    October 15, 2011 - 1:31 pm

    Never taunt an unemployed proofreader, darling.

  2. Howard Cruse
    October 15, 2011 - 2:11 pm

    It’s been dispiriting to watch the everyday civics lessons I learned in high school about the social contract of shared responsibility that binds us together be redefined as radical socialism.

  3. JosephW
    October 15, 2011 - 10:54 pm

    What’s even more jaw-droppingly astonishing is how so many of the right-wing talk hosts (I doubt names are necessary) have managed to convince their listeners how they’re just “average folks” despite the huge salaries they draw and the rather atypical lifestyles most enjoy.

  4. Steve Baroff
    October 16, 2011 - 12:32 pm

    Martha. You are correct. It is delusional to believe we Americans have no class system. Of course we do. We have the poor; many of whom are unable to find and keep a job, nor afford the cost of their health care and retirement. Some cannot even provide food for themselves and their families. We also have the poor, many of whom are UNWILLING to provide for themselves. Thank goodness the US is a relatively wealthy nation that should be able to provide for the former. Unfortunately, we are no longer so wealthy that we can provide for the latter. Speaking of wealthy, we have that class as well. Many, who put greed and the accumulation of wealth above all else, and many like your father, who accumulated a great deal of wealth but always gave generously to his family and to his community. Unfortunately it is the middle class that has been getting squeezed. But they are not getting squeezed by the wealthy. Nor will they benefit by the government squeezing the wealthy. They have been squeezed by decades of bad management of the companies they work for and by federal government policies which make it more advantageous for corporations to operate and expand overseas then to operate here. I asked a while back, “What is the proper amount of tax we all should pay?” but not sure I ever got an answer. You suggest a certain portion of the population pay “more,” but if “more” doesn’t scratch the surface of fixing our deficit and debt problems, don’t we really need “MORE?” That’s where I get confused. It seems to me the since our federal government always spends more than it receives, we are engaged in a fools errand. Perhaps rather than just focusing on the rich paying more of their “fair share”, we ought to look at the irresponsibility of the managers of this tax revenue and how they choose to redistribute it. We can do that next November. Stay well.

  5. Martha Thomases
    October 17, 2011 - 5:51 am

    @Steve: There is no magic number to the tax rate that I know (and I’m not an economist, nor even that great at math). However, my son, the economics major, tells me it’s not sensible to try to reduce the size of government during a recession, especially one that has cost so many people their jobs.

    I think the best way to balance the budget is to do whatever it takes to create full employment (keeping in mind that true full employment is probably a utopian ideal, but one worth striving for). During the Clinton years, when tax rates were higher, millions and millions of jobs were created. During W’s term, when tax rates were lowered, far fewer jobs were created. those rates are still in effect, and jobs are shrinking.

    The last stimulus wasn’t enough. Paul Krugman, among others, said so at the time. One-third of it was tax cuts, which don’t seem to have worked.

    Obviously, tax rates alone don’t determine the employment environment. However, I think a combination of increased government efficiency (although I’m afraid that entirely eliminating waste is as much of a utopian ideal as full employment, but, again, one worth striving for), and stimulus spending on infra-structure, paid for by an increase in taxes on the rich, is worth a try.

  6. Whitney
    October 17, 2011 - 12:51 pm

    There is no FDR on the horizon, as far as I’ve been able to determine. But we do need someone like him: One who can speak with authority from being a insider within the financial elite, but one who takes the term ‘public servant’ as being a sacred charge.

    Warren Buffet has been intriguing to watch, as has Bill Gates. They have learned one of the great mysteries of life: Helping others makes you feel great. So the truely selfish can fulfill their desires by being philanthropic. Ironic.

  7. Vinnie Bartilucci
    October 17, 2011 - 3:33 pm

    I know I sound like a broken record on this(*) but I have to ask the same question…Why should the rich pay a larger percentage of their income in taxes than anyone else?

    They should pay more MONEY that a middle clas person, absolutely. But if the tas rate were ten percent, a person making $100,000 would pay $10,000 and a person making a million would pay $100,000. Ten times “MORE”.

    It’s the deductions and “loopholes” (whice are just other deductions, one the middle class either don’t know about or can’t take advantage of) that renders the true tax rate lower than it’s intended to be for the rich and the tax-savvy. That’s how Warren Buffet purportedly pays less tax than his secretary. (He doesn’t, BTW. He ends up paying a lower tax RATE, but he still pays more MONEY.)

    People go through life annoyed when they have debates about this stuff, because they were not told there would be math. People don;t want to hear (and politicians don’t want to discuss) hard numbers; instead they go with undefined variables like “Fair”, “more” and “enough”. Agreeing on the value of those variables is as impossible as coming to an agreement on how much is “Fat”.

    And the decision on which companies are greedy is based very much on how much people like them. No one is declaring Apple a company that made Too Much Money, because they LIKE Apple, and feel they deserve that money. But an oil or drug company gets accused of greed, not based on any facts, but on hearing an astounding number like 500 billion dollars and declaring out of hand that that’s “too much”.

    This is exacerbated when the stories circulate that said companies pay almost no taxes. With all the deductions and allowances they get, it doesn’t MATTER what the tax rate is.

    The proverbial “rich” should pay more. They should pay closer to what the tax rate is. If people try to get them to pay an XYZ% higher rate than the middle or lowwer class, that’s easy to debate against, and the class warfare argument does hold some water. But how can they complain if they’re being asked to pay the same amount as everyone else?

    In honesty, I don’t think the solution is to tax the money away from them. The economy prospers when money moves around. I’d love to see a mandatory minimum spending requirement. People with income of over X amount must spend a minimum percentage of that income, be it on leisure items, improvement in one’s property or company, or THEN it is taken as taxes, or if you insist, a penalty. Right now the rich take their money, put it in the bank, and there it stays, making more money. We need to stir the pot. And not just by giving it all to the government and letting them decide what to do with it.

    (*) Good Lord, man, have you never heard of downloads?

  8. Martha Thomases
    October 18, 2011 - 5:40 am

    @Vinnie: Actually, the way the tax code works, we are all taxed at the same rate for the same money. If you earn 249,999, you pay one rate on that money. It’s only the amount over $250,000 (or one million, or a gazillion) that will be taxed at a higher rate.

  9. R. Maheras
    October 18, 2011 - 10:48 am

    I find it very irritating that about half of America pays no income tax.

    That’s not fair to everyone who does, and I say that as someone who has been near the bottom rung of the economic ladder.

    Rich or poor, I think every person or business should be paying income tax — which is why I’ll never be running the country. The right thing to do is rarely the most popular thing to do.

  10. Martha Thomases
    October 18, 2011 - 12:40 pm

    @R: Just because one doesn’t send in a check on April 15 doesn’t mean one doesn’t pay any taxes. There are sales taxes, payroll taxes, and lots of others.

  11. R. Maheras
    October 18, 2011 - 2:23 pm

    Martha — I specifically addressed income tax, because, as the name implies, it is designed for those working and earning an income.

    I’m personally aware of all of the other taxes, and then some, such as a neverending property tax.

  12. Martha Thomases
    October 18, 2011 - 4:19 pm

    R: I suppose we could get money from poor people. One in six children in this country(I think that’s the statistic I heard) suffers from hunger, but, hey, they should pay their own way.

    I mean that less snarkily than it appears. In fact, I do think when we all contribute to our communities, they are better. However, for people without a lot of money, there can be other ways to participate.

    For example, poor people serve disproportionally in the military.

  13. R. Maheras
    October 18, 2011 - 7:27 pm

    I’ve heard liberals say for years that “poor people Serve disproportionately in the military,” and while that may have been true during the days of the draft, I’ve seen no contemporary comprehensive survey data to back that up for the all-volunteer force.

    I quit a union job and took a 66 percent pay cut to join the Air Force. So while I wasn’t poor before I joined, I guess I was poor afterwards — especially after I got married — but that’s not what liberals are inferring.

    Today’s military is pretty selective, and I’d argue that it’s actually much, much harder these days for someone in poverty to meet military entrance standards than someone from a higher socio-economic level. This isn’t World War I or World War II, where shoeless, illiterate folks from remote backwashes were drafted by the tens of thousands, and a high school diploma was irrelevent.

  14. Martha Thomases
    October 19, 2011 - 4:46 am

    Liberals say it because statistics show it’s true. Your experience is, of course, valid, but it’s not the case.

    And, while I’m here, let me add that teachers also contribute a great deal to society. With their education, they could make much more money doing something else. Also, firefighters, police, garbage collectors, Peace Corps volunteers – there are lots of people who, if I were Empress, I would consider exempting from paying taxes.

    But people who make more than $1 million a year? They pay first.

  15. R. Maheras
    October 19, 2011 - 9:11 am

    Martha — What statistics? I haven’t seen any comprehensive survey that examined the existing socioeconomic level of people at the time they joined the military.

    And what you obviously do not realize is that based on current recruiting standards, it’s those in the lowest socioeconomic level that will have the hardest time qualifying for the military. Why do you think there are parts of cities nationwide where the unemployment rate for recruiting age people is 20-50 percent?

    I worked with recruiters in the Chicago area for years, and the constant drumbeat I heard regarding potential recruits is that a huge percentage of the people who walk in the door have to be turned away because they just do not meet the basic requirements. I’ve heard figures that range from 80 to 90 percent in some areas.

    Regarding taxes, if I were running the show, everyone would pay — including General Electric.

  16. Martha Thomases
    October 19, 2011 - 3:07 pm

  17. R. Maheras
    October 19, 2011 - 7:19 pm

    You aren’t kidding it’s biased!!!

    I have to wonder if their strategy to counter alleged lies told by military recruiters is to tell even bigger lies. Thank god for the Internet, because any smart kid today who’s on the fence about joining can spend about 10 minutes Net surfing to find out what’s true and what is bullshit.

    By the way, my recruiter told me exactly zero lies, and to this very day I am deeply indebted to him for steering this skeptic into the best decision I ever made. I’ve never forgotten his name to this very day: Staff Sergeant Randy Quinn. Thanks a million, Randy, wherever you may be!

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